RJZ Mining Corporation

November 23, 2006 16:58 ET

RJZ Updates $1,080,000 Private Placement

CALGARY, ALBERTA--(CCNMatthews - Nov. 23, 2006) - Further to a press release dated October 26, 2006, RJZ Mining Corporation (TSX VENTURE:RJZ) ("RJZ") is providing an update to the $1,080,000 private placement. A non-brokered private placement of up to 9,000,000 Common Shares at a price of $0.12 per common share for gross proceeds of up to $1,080,000 will proceed and is expected to close by December 1, 2006.

In addition to the statutory hold period that will apply to all Common Shares issued pursuant to the private placement, certain Common Shares under the private placement will be held in escrow as follows. Any Common Shares purchased by insiders on the private placement that in aggregate are over 25% of the total private placement will be escrowed for 12 months with the first release, being 50% of the escrowed shares, 6 months from the closing date of the private placement; and the second release, being the remaining 50% of the escrowed shares, 12 months from the closing date of the private placement. It is currently anticipated that 5,370,000 Common Shares will be purchased by insiders, so based on that amount, 3,120,000 of the Common Shares purchased by insiders would be escrowed.

The terms of the private placement and the escrow provisions noted above were approved by the directors of RJZ including the directors that are independent to the private placement.

The TSX Venture Exchange does not accept responsibility for the accuracy of adequacy of this release.

Contact Information

  • RJZ Mining Corporation
    Alan Johnson
    Chief Executive Officer
    (403) 239-0730